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Flashcards in Human Development in Poor Countries Deck (16)
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1
Q

Authors of this paper?

A

Anand and Ravallion (1993)

2
Q

Human Development Report views that…

A

Human development is the overriding purpose of economic development.

3
Q

Income-centered approach

A

Investment in human capital entirely in terms of the extra income the investment generates.

4
Q

Capabilities approach

A

Improvements in literacy and health should be considered ends in themselves , even if the rate of return is zero.

5
Q

World Development Report takes what view?

A

Income-centered approach. Views the reduction in poverty in terms of incomes as the fundamental objective of development.

6
Q

Human Development Report takes what view?

A

Capabilities approach. Views the provision of public services as the leading instrument for human development.

7
Q

Relationship between incomes and capabilities

A

Fairly inconclusive… some studies predict a positive effect of rising incomes on health and education, while others predict no effect.

8
Q

Basic capabilities tend to be _____ for people living in rich countries

A

Higher.

9
Q

Therefore should economic growth be the target in promoting human development in poor countries?

A

Not necessarily. If one controlled for the incidence of absolute poverty or the provision of public services, the correlation between income and human development will vanish.

10
Q

Average incomes are _____ correlated with the incidence of absolute poverty

A

Negatively. A 10% increase in GNP per capita decreases the poverty index by 6.5%.

11
Q

Average incomes are _____ correlated with public spending on social services

A

Positively. A 10% increase in GNP per capita increases public health spending by 9.1%.

12
Q

Treating ‘social spending’ as a single aggregate in regressions is unsatisfactory because…

A

The allocation of that spending across subsections will matter a great deal to the impact on social outcomes.

13
Q

Issues of simultaneity bias?

A

Higher life expectancy may be due to higher public health spending and vice versa.

14
Q

Average income matters in the promotion of human development only insofar as it…

A

Reduces poverty and finances key services. Therefore policy intervention can play a role in promoting HD independently of the promotion of economic growth.

15
Q

Sri Lanka

A

Very high quality health and education. Between 1950-1960 health spending grew A LOT but per capita income grew very little.

16
Q

An increase of 1 Sri Lankan Rupee in public health spending per capita would reduce infant mortality by…

A

1.1 deaths per thousand - 22 times more than the impact on infant mortality from the same increase in av. income.